The rise and rise of software as a service has been such a mantra in the IT media over the last few years that it comes as something of a shock to see the SaaS model actually on the wane in enterprise search. Nevertheless, a recent report by CMS Watch says it plainly: “[the SaaS] model has been a hot topic recently [but] the SaaS model for enterprise search is on the decline”. So, what’s going on here?
CMS Watch itself lists three possible reasons: the preponderance of web-only search in SaaS offerings; the popularity and ease-of-use afforded by appliances; and the competition-squishing presence of Google in the sector.
Let me suggest two more: the fact that free is a compelling price, and the notion that SaaS might not be all things to all men.
Companies looking for a search service today will inevitably be attracted to freebie tasters, especially when the companies offering them -– Microsoft and IBM -- are as big as they come. As discussed earlier, these are highly attractive inducements that offer familiar environments to try out, and a solid upgrade path for those who want to carry on afterwards.
Second, it’s time to admit that SaaS has no Midas effect, except perhaps on marketers. The on-demand model has had a revolutionary effect on customer relationship management and sales force automation, and it is changing the way human resources operates, for example in measuring employee performance. But there are many, many other areas where it has had little or no effect. Even in the much-hyped area of productivity applications where Google and various startups have generated scads of coverage, there has been close to no impact on the hegemony of Microsoft Office, for example.
SaaS is a hugely important trend but privacy concerns, the need to delve into far-flung corners of the enterprise and ancient applications, and sundry other factors mean that search is unlikely to be a happy hunting ground for the model in the immediate future at least.
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